Our system constantly scans mountains of data for patterns. Back in 1980, the Dow Jones from August through October had a series of progressive peaks and troughs. It displayed an unusual megaphone pattern, which is indicative of a propped up market. The DOW put in a series of higher highs and lower lows each month. This is what we currently expect into October. Due to short interest being at all time lows, there are very few large bids beneath the market when sell-offs occur. These will result in a series of mini flash-crash events which will be bought up courtesy of the Fed. So anyone in index funds can sit tight, but for traders, your antennae should be up. We also don’t expect broad participation over the next 2 months in the market. Only the large mega-cap names will lead and support the indexes. The overall breadth of the market will remain weak. Thus, any story stocks, momentum names, or Covid-sensitive stocks may not participate in these rebounds. For index funds and mega-cap tech names, the Fed will continue to provide waves of buying. After October 21st, all bets are off and we expect an ICL correction into early December, striking our AI target low.
Gold and silver look lower into next week with miners showing a bit more strength.
Our September 2nd US dollar turn date was right on target. We sold SILJ yesterday in anticipation of this turn.
We are long term holders in SPCE. It certainly is volatile, but the sector is real and the company is the future.
BTC may work lower into early September before we explode up into month end. $13,000-$14,000 during September is possible and $15,000 in November as well.
Denny's time will come over the next few days.
X is still coiling sideways. A breakout of some sort should occur after early next week when the dollar's first advance is complete.
Now is a great time to add crude oil into September 21/22.
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